TAG Industrial Watch: August 26, 2023

This past week, the coalition between the BRICS (Brazil, Russia, India, China, and South Africa) concluded their annual summit in South Africa where 67 heads of state were invited to attend. Six new nations were offered membership, including OPEC nations Saudi Arabia, United Arab Emirates, and Iran. The new BRICS now includes 6 of the top 10 oil-producing countries in the world. So, why is this so important to American industrial real estate owners?

Go to any warehouse or factory and chances are they are filled with goods and materials produced overseas. Thanks to the greenback’s role as the world reserve currency, globally traded goods (most notably oil) are usually traded in dollars. For decades, the U.S. has taken advantage of the dollar’s privilege by essentially printing money to buy imported goods, resulting in trillion-dollar trade deficits in recent years. The trade deficits have led to unintended consequences for our trading partners, and the U.S. compounded these problems by sanctioning Russia for attacking Ukraine. Effectively, we told the world that if you do something the U.S. doesn’t like, you’ll lose access to all those dollars you’ve accumulated.

Now some of our biggest trading partners, which happen to be members of BRICS, are joining forces to enact policies to reduce their usage of the dollar. If global demand for dollars collapses, the cost of America’s imports would skyrocket as purchasing power changes global hands. While this would significantly impact American companies that rely on imported goods, it would heavily benefit companies that produce globally traded commodities like oil. That benefit would also extend to the industrial properties that these companies rely on. The world is changing and now is the time for industrial investors to prepare for that change.

I N D U S T R I A L   N E W S

What Is BRICS, Which Countries Want To Join And Why?
Reuters – August 21, 2023
Read More

Saudi Arabia, UAE And Iran Among Six
Countries Invited To Join BRICS Group
CNN Business – August 24, 2023
Read More

Commercial Mortgage Lending Index Down 52.2%
GlobeSt.com – August 15, 2023
Read More

Multifamily, Industrial Remain Top Choices For Institutional Investors
WealthManagement.com – August 10, 2023
Read More

Another Downward Revision: BLS Confirms US Payrolls
At Least 306,000 Lower Than Previously Reported
ZeroHedge – August 23, 2023
Read More

Amenities Have Evolved In Office And Industrial Spaces
Connect CRE – August 18, 2023
Read More

R E G I O N A L   N E W S

The Forgotten Powerhouse? Indianapolis’
Industrial Market Keeps Chugging Along
REjournals – August 2, 2023
Read More

PrimeSource Opens 1 MSF Chicago Warehouse
Commercial Property Executive – August 8, 2023
Read More

Fontana Rejects Inland Empire Industrial
Campus Next To High School
GlobeSt.com – August 1, 2023
Read More

United Airlines Buys More Than 100 Acres
To Fuel Denver Airport Expansion
CoStar – August 7, 2023
Read More

Telecom Giant Frontier Considers Moving
Headquarters To North Texas
WFAA – August 15, 2023
Read More